The Hindu : World's largest jute mill goes silent

Online edition of India's National Newspaper
Tuesday, Jul 02, 2002

International

International

World's largest jute mill goes silent

By Haroon Habib

DHAKA July 1. Adamjee, the world's largest jute mill, closed its gates to 25,000 workers from midnight on Sunday.

The Adamjee jute mill (AJM), which was started 50 years ago, was forced to close down after the Begum Khaleda Zia Government took a controversial decision last week citing the mill's huge recurring losses. But the workers and employees, who have been ordered to leave their homes in the country's biggest industrial district, alleged the losses were due to rampant corruption and politics.

Due to strong security measures, the frustrated mill workers could not offer any resistance against the abrupt closure and were told that their wages would be paid in due course.

The Government said the mill had incurred a total loss of taka 1,200 crores since nationalisation in 1972. Despite international donor agencies urging that the loss-incurring mill should be closed, previous governments chose not to, fearing the political fallout. Experts believe that ineffective management and corrupt practices, aided by labour leaders, were responsible for the closure of the mill, which was the pride of the country's industrial sector and had witnessed many mass movements against Pakistani rulers.The mill, which has just completed its golden jubilee, became well known in the early Fifties when jute was in great demand worldwide and Bangladesh, then East Pakistan, was the largest exporter. Established in December 1951 by three brothers from Pakistan — Wahed Adamjee, Zakaria Adamjee and Gul Mohammad Adamjee — the mill had an initial investment of taka five crores. The export of jute fetched more than 75 per cent of East Pakistan's total foreign exchange earnings. The use of money earned thus for the development of West Pakistan (now Pakistan) was a major cause of political discontent in East Pakistan. The mill workers played a significant role in the freedom struggle of the country, which ultimately turned into the War of Liberation against the Pakistani army in 1971.

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